Comments on: NFA Bans Hedging in US Forex Accounts

By: Jonny

Jonny — Tue, 28 Apr 2009 09:46:47 +0000

Most profitable traders hedge. Not always with that intent but since they tend to enter trades when the opportunity presents itself; whether it is long or short and irrespective of what other positions they have open, it is inevitable that they will have offsetting positions open at one time or another. I trade the same way, I see an opportunity, enter, set and forget about it. Almost all of them end up being profitable since we all know that prices go up and down. NFA’s ruling is simple. It was designed to thwart this type of successful winning traders. The reasoning is very clear. It is not designed to protect traders or the market. Think about it. They don’t mention their reasoning… they just announced it. Pathetic.

By: Hugh

Hugh — Tue, 28 Apr 2009 07:31:12 +0000

Very true, I’m glad it’s a harmless change.

By: Bess Obarotimi

Bess Obarotimi — Tue, 28 Apr 2009 06:19:39 +0000

I’ve never been able to hedge using my broker anyway. At times for example I’ve wanted to go short on a lower timeframe and long on the higher timeframe on the same pair. The second trade placed always cancels out the first. I have recently considered more than one account. So really the ban would solve nothing